Suppose that on January 1, the price of one hundred yen was 80¢ and PPP held. Over the year, the Japanese inflation rate was 5 percent, and the U.S. inflation rate was 10 percent. If the exchange rate at the end of the year was 90¢ at the end of the year, does the yen appear to be overvalued, undervalued, or at the PPP level? Explain your answer.